Establishing a Sound, Stable,and Long-Term Mechanism for Poverty Reduction

By HUANG CHENGWEI

POVERTY is a state that can last indefinitely. A sound， stable， and long-term mechanism is therefore necessary to end it. Such a mechanism decides the process and outcome of the fight against poverty， and is critical for the realization of Chinas post-2020 goal of sustainable development in poor areas and reduction of relative poverty. It also lays the foundation for realizing the countrys second centenary goal – building a modern socialist country that is prosperous， strong， democratic， culturally advanced， and harmonious by 2049.

Lasting Results

Our poverty reduction aims to help people shake off poverty once and for all by instilling in them innovative ideas， arousing their enthusiasm， providing them stable incomes， and improving infrastructures and public services for them. In doing so， we will reduce their vulnerability， enhance their selfdevelopment capability， and steadily improve their livelihood， thus permanently freeing them from the trap of poverty. A sound， stable， and long-term mechanism for poverty reduction will not only help individual families， but also boost sustainable socio-economic development of poor communities， and break the cycle of poverty from generation to generation.

According to Chinas plan， those afflicted by poverty in rural areas across the country will have ample food and clothing， and access to compulsory education， basic medical care， and safe housing by 2020. On this basis， they will have stable incomes， stronger personal development capacity， and more courage to face adversity. Meanwhile a social network that has been continuously improved will shield them from various risks. To make these possible， we must ensure that impoverished people have more diversified and stable sources of income. We encourage these people to adopt various modes of production according to individual and local conditions to diversify their income structure. At the same time， we also motivate them to climb out of poverty through their own efforts instead of waiting for aid to be provided. With more investment in human resources， China is expected to eradicate generational poverty. Besides that， community-based mutual-aid systems will be established to increase low-income peoples resistance to risks and uncertainties.

Regional Experiments

Some regions in China have carried out experiments on poverty reduction with lasting effects， and garnered valuable experience that can be shared with other parts of the country.

For instance， Qingdao City extends the assistance measures and policy incentives for impoverished people to a certain period after they rise above the poverty line to ensure that the improvement in their lives is sustainable. Impoverished rural communities and their residents are encouraged to participate in commercial and industrial projects as shareholders by investing with their land， forests， houses， or the subsidies they receive from the state， which can bring them stock yields. Meanwhile the social security network is reinforced as a line of defense for low-income people. This covers the rural subsistence allowance system， the social assistance policy， aid for people with critical illnesses， and poverty alleviation insurance.

Poverty alleviation in rural areas focuses on engaging poor farmers in productive activities. To this end， we should incorporate targeted poverty alleviation measures with the expansion of agricultural operations， establish a mechanism of shared interest between market entities and poor farmers， and allow these people to get a share of the profits at every link of the industrial chain through the integration of the pri- mary， secondary， and tertiary industries. In addition to converting their land and other assets into shares， rural residents can diversify their source of income by finding non-agricultural employment or applying for government-subsidized jobs which provide disadvantaged groups with employment.

A Nationwide Campaign

To establish a sound mechanism to ensure lasting results of poverty alleviation and eventually win the war on poverty requires joint efforts of the state， local governments， impoverished rural communities， and the non-government sector. Government at all levels， and the whole of society should have this awareness， and accordingly adjust relevant policy design， funding， work methodology， and work priority.

Poverty is a long-standing problem in human society. We must properly handle the relationship between eradicating absolute poverty and alleviating relative poverty. Our goal for now is to generally end absolute poverty in China. It takes long-term efforts over an extended period to reduce relative poverty.

A favorable institutional environment should be created to ensure the lasting results of poverty alleviation work. According to the reqiurements of the central government， local authorities should extend their funding and policy support for impoverished regions， communities， and individuals to a certain period after they climb above the poverty line. Meanwhile they will continue to implement the policies of targeted poverty alleviation to ensure the consistency of policy and work pattern.

In the countryside， public services and the social security system should be further improved. To this end， the state will increase funding for infrastructure， education， health care， sports， culture， and social security for underdeveloped rural areas. The work will also proceed to ensure that low-income people have enough food and clothing as well as the access to compulsory education， basic health care services， and safe housing. In this way， a social security network will be created for them to increase their resistance to various risks.

More attention will be given to edu- cation and vocational training for rural residents to boost the human resource in impoverished regions and communities. Pre-school education and compulsory education will be strengthened， and various supportive policies， including tuition/fee exemption and reduction， and various subsidies and allowances for students， will be implemented. They are aimed at reducing the financial burden on poor families incurred by childrens schooling. Vocational training for rural residents should be targeted and practical. More training will be provided on e-commerce and other new modes of business to cultivate modern farmers and motivate them to start their own businesses or find new employment.

The state will guide underdeveloped areas to develop multiple industries， upgrade their industrial structure and competitiveness， and regulate the development of leading rural enterprises and cooperative organizations. A mechanism will be established to allow lowincome groups to share in the fruits of industrial development. Meanwhile effective systems for funding farmersprograms and risk prevention will be established. The aim is to meet the financial needs in agricultural development and also shield impoverished farmers from natural and market risks through insurance and other means.

The governance of rural communities will be improved. This entails strengthening the collective economy and the mechanism of stationing officials in villages to help with local development. The goal is to build the capacity of rural communities for endogenous growth. Members of the Communist Party of China should play a leading role in this aspect， the Chinese tradition of neighbors helping each other in time of difficulties should be promoted， and private capital should be given a key role to play in poverty alleviation. The collective economy of villages should be strengthened to lay a solid foundation for assistance to impoverished residents， development of public wellbeing programs， and provision of public services.

In addition， the whole society will be mobilized to fight poverty. All social forces， including social organizations， are encouraged and guided to participate in rural poverty alleviation and rural development. They are expected to provide more resources and more flexible and effective methods to combat poverty. With their advantages in specific fields and professions， social organizations can instill into impoverished groups ideas of modern development， unleash their inner drive， boost their confidence， and arouse their aspiration to build a better life through their own efforts.